diff --git a/src/commands/decompress.rs b/src/commands/decompress.rs
index a914fb4..83671dd 100644
--- a/src/commands/decompress.rs
+++ b/src/commands/decompress.rs
@@ -31,6 +31,7 @@ pub struct DecompressOptions<'a> {
     pub formats: Vec<Extension>,
     pub output_dir: &'a Path,
     pub output_file_path: PathBuf,
+    pub is_output_dir_provided: bool,
     pub is_smart_unpack: bool,
     pub question_policy: QuestionPolicy,
     pub quiet: bool,
@@ -74,6 +75,7 @@ pub fn decompress_file(options: DecompressOptions) -> crate::Result<()> {
             options.output_dir,
             &options.output_file_path,
             options.question_policy,
+            options.is_output_dir_provided,
             options.is_smart_unpack,
         )? {
             files
@@ -152,6 +154,7 @@ pub fn decompress_file(options: DecompressOptions) -> crate::Result<()> {
                 options.output_dir,
                 &options.output_file_path,
                 options.question_policy,
+                options.is_output_dir_provided,
                 options.is_smart_unpack,
             )? {
                 files
@@ -186,6 +189,7 @@ pub fn decompress_file(options: DecompressOptions) -> crate::Result<()> {
                 options.output_dir,
                 &options.output_file_path,
                 options.question_policy,
+                options.is_output_dir_provided,
                 options.is_smart_unpack,
             )? {
                 files
@@ -218,6 +222,7 @@ pub fn decompress_file(options: DecompressOptions) -> crate::Result<()> {
                 options.output_dir,
                 &options.output_file_path,
                 options.question_policy,
+                options.is_output_dir_provided,
                 options.is_smart_unpack,
             )? {
                 files
@@ -260,6 +265,7 @@ pub fn decompress_file(options: DecompressOptions) -> crate::Result<()> {
                 options.output_dir,
                 &options.output_file_path,
                 options.question_policy,
+                options.is_output_dir_provided,
                 options.is_smart_unpack,
             )? {
                 files
@@ -295,13 +301,20 @@ fn execute_decompression(
     output_dir: &Path,
     output_file_path: &Path,
     question_policy: QuestionPolicy,
+    is_output_dir_provided: bool,
     is_smart_unpack: bool,
 ) -> crate::Result<ControlFlow<(), usize>> {
     if is_smart_unpack {
-        smart_unpack(unpack_fn, output_dir, output_file_path, question_policy)
-    } else {
-        unpack(unpack_fn, output_dir, question_policy)
+        return smart_unpack(unpack_fn, output_dir, output_file_path, question_policy);
     }
+
+    let target_output_dir = if is_output_dir_provided {
+        output_dir
+    } else {
+        output_file_path
+    };
+
+    return unpack(unpack_fn, target_output_dir, question_policy);
 }
 
 /// Unpacks an archive creating the output directory, this function will create the output_dir
diff --git a/src/commands/mod.rs b/src/commands/mod.rs
index e2b85de..8142bc0 100644
--- a/src/commands/mod.rs
+++ b/src/commands/mod.rs
@@ -146,7 +146,7 @@ pub fn run(
         }
         Subcommand::Decompress {
             files,
-            output_dir,
+            mut output_dir,
             remove,
             no_smart_unpack,
         } => {
@@ -177,9 +177,13 @@ pub fn run(
 
             check::check_missing_formats_when_decompressing(&files, &formats)?;
 
+            let is_smart_unpack = !no_smart_unpack && output_dir.is_none();
+
+            let is_output_dir_provided = output_dir.is_some();
+            let is_smart_unpack = !is_output_dir_provided && !no_smart_unpack;
+
             // The directory that will contain the output files
             // We default to the current directory if the user didn't specify an output directory with --dir
-            let is_smart_unpack = !no_smart_unpack && output_dir.is_none();
             let output_dir = if let Some(dir) = output_dir {
                 utils::create_dir_if_non_existent(&dir)?;
                 dir
@@ -201,6 +205,7 @@ pub fn run(
                     decompress_file(DecompressOptions {
                         input_file_path: input_path,
                         formats,
+                        is_output_dir_provided,
                         output_dir: &output_dir,
                         output_file_path,
                         is_smart_unpack,